4.3.2.20 Income Received as Special Financial Assistance

Natural disaster trust funds

Payments from trust funds that pay out assistance to people suffering losses from natural disasters are one-time relief payments, and are NOT regarded as income for social security purposes.

Payments from medically acquired HIV trusts

Payments from the Mark Fitzpatrick Trust and the NSW Trust are a combination of lump sums and periodic payments and are NOT treated as income for social security purposes under the compensation and income test provisions.

Explanation:

• The Mark Fitzpatrick Trust was established in 1989 by the Commonwealth Government to provide special financial assistance to people with medically acquired HIV infection and AIDS, their dependents and carers.
• The New South Wales (NSW) Government has established the NSW Medically Acquired HIV Trust to provide financial assistance packages for people with medically acquired HIV or AIDS in NSW. The Mark Fitzpatrick Trust acts as a payment agency on behalf of the NSW Medically Acquired HIV Trust.

Exception: The continuing assets and income tests treatment will be determined by how a person makes use of the funds. The funds may be used to obtain additional assets such as a car. For a purchase such as this the assets test would apply. Or, the funds may be placed in a financial investment. The funds have then become a financial asset (refer to SSAct section 9(1) for all the types of financial assets), assessable as an asset and subject to the income test deeming rules.

Act reference: SSAct section 9(1) Financial assets and income streams definitions, section 1071 Seniors Health Card Taxable Income Test Calculator, section 8(8) Excluded amounts - general, see (van) and (vi)

Policy reference: SS Guide 4.4 Deeming Provisions

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Last reviewed: 2 March 2009